About Item Types

In the Type field on the Item Card page, you can select what the item is used for in your business and therefore how it is managed in the system. Three options exist:

Option Typical Purpose
Inventory A physical unit, such as a bicycle, for full business support.
Non-Inventory A physical unit, such as a bolt, for limited business support, for example, because the item is only used internally and has a low cost.
Service A labor time unit, such as a consultancy hour, for limited business support.

The Inventory type involves full tracking of inventory quantity and value. Therefore, all item transaction types are supported, and items of type Inventory can be used with all item-handling features.

The Service and Non-Inventory types do not involve tracking of inventory quantity and value. Therefore, only selected item transaction types and features are supported.

The three item types support the following features respectively.

Item Type Sales Purchasing Job Consumption Service Consumption Assembly Consumption Production Consumption Assembly Output Production Output Location Transfer Physical Counting Inventory Revaluation Inventory Costing Item Tracking Reservation Warehousing Planning
Inventory Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Non-Inventory Yes Yes Yes Yes Yes Yes No No No No No No No No No No
Service Yes Yes Yes No No No No No No No No No No No No No

Note

Items that you offer to your customers but you do not want manage in your system until you start selling them can be set up as catalog items. Catalog items are not to be mistaken with regular items of type Non-Inventory. For more information, see Work with Catalog Items.

Note

Customers' items that you perform service on, such as a printer, are called service items. Service items have nothing to do with regular or catalog items. However, service components can be regular items. For more information, see Set Up Service Items and Service Item Components.

See Also

Register New Items
Setting Up Inventory
Managing Inventory Costs
Inventory
Working with Business Central